Our response is too long to fit into the chat box, so we’re posting it here

To Delia & welovedcm: Shorter lead time, cross docking and postponement are all value adding services. They help to improve customer service. With better customer service, customers would have the perception that the product has a higher value, compared to one without customer service. As we all know, no one likes to wait. Thus a shorter lead time increases customer satisfaction which increases the value of the product perceived by the customer. For cross docking, we’ll use perishable products as an example. For these products, their value decreases with time, which makes it essential to ship it out asap. For example, when vegetables are kept for a period of time, it will start to turn brown and rot. Once this happens, its value drops drastically and it becomes almost worthless. Cross docking also brings different products from different suppliers together, then consolidating the products together into one package; that is one customer’s order. This package can be sent out altogether to the customer at one arrival time instead of receiving them at different times which would cause confusion. Lastly, postponement allows customization. For example, Dell allows their customers to pick and choose exactly what they want. This creates value as customers can have their computers to suit their liking, rather than having one which does not function using the language they are most comfortable with, or not having a software that they require, which would be of no value to them. We hope that this has answered your question. Please feel free to clarify any other doubts with us. Thanks.